Summary
VanEck has been fined $1.75 million by the Securities and Exchange Commission (SEC) for failing to disclose the role of a social media influencer in its Social Sentiment ETF (BUZZ). The ETF, which aims to track stocks popular on social media, was launched in 2021 and backed by Barstool Sports founder Dave Portnoy. VanEck failed to disclose the influencer’s involvement and the fee structure to the ETF’s board. The penalty comes as VanEck’s spot bitcoin ETF, launched in January, has seen increased inflows. The ETF holds some exposure to crypto stocks, including Coinbase.
Key Points
1. VanEck, an investment management company, has been fined $1.75 million by the Securities and Exchange Commission for failing to disclose the role of a social media influencer in its Social Sentiment ETF (BUZZ).
2. BUZZ is an ETF launched in 2021 and backed by Barstool Sports founder Dave Portnoy. It aims to track stocks that are popular on social media and utilizes content from online sources to determine investor sentiment.
3. VanEck also runs a spot bitcoin ETF and was one of the firms to receive approval for its bitcoin ETF in January. The bitcoin ETFs have seen inflows recently and comprise a significant portion of the assets under management in the ETF industry.